47 minutes ago
Regional banks crushed by market reaction Wednesday to March inflation
It’s not immediately clear whether regional banks fell as much as they did Wednesday in response to accelerating inflation in March and the subsequent upward repricing of Treasury yields. After all, the S&P 500 financial index only fell 1.5%, compared to a 1% decline for the S&P 500.
But the S&P 500 Financials contains all sorts of entities, from the nation’s largest banks such as JPMorgan and Bank of America to the credit card networks Visa and Mastercard.
Take a closer look at regional banks to find the S&P 1500 Regional Bank Index, made up of all those from the S&P 500, S&P Midcap 400 and S&P Smallcap 600, to see it down 4.5% on Wednesday. Examples of carnage abound: Long Island’s New York Community Bancorp lost 8.1 percent, Boston’s Brookline Bancorp lost 5.9 percent, and Phoenix’s Western Alliance Bancorp lost 5.8 percent. MVB Financial of West Virginia fell 5.1% and BCB Bancorp of New Jersey fell 4.5%.
Bank of America analysts said Monday that investors will scrutinize banks’ first-quarter earnings reports for “potential areas of vulnerability amid higher, longer-term rates (commercial real estate, overall credit, costs deposits) while seeking a floor in net interest income. NII; ~80% of income on average).”
-Scott Schnipper
An hour ago
Vertex Pharmaceuticals acquires Alpine Immune Sciences
Shares of Vertex Pharmaceuticals fell 1% in extended trading after the biotechnology company said it would acquire Alpine Immune Sciences for $4.9 billion in cash, or about $65 per share.
Alpine shares jumped more than 36% after the bell. The biopharmaceutical company is developing protein-based immunotherapies to treat certain autoimmune diseases.
-Samantha Subin
An hour ago
Stock futures open lower Wednesday evening
U.S. stock futures were lower Wednesday evening.
Futures tied to the S&P 500 slipped 0.2%, while Dow futures fell 79 points, or 0.2%. Nasdaq 100 futures slipped 0.16%.
–Darla Mercado
News Source : www.cnbc.com
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